Gold traded higher early Thursday, rebounding slightly from recent sharp declines that kept the metal hovering around a three-week low for the past couple of days.
The bullion sentiment has been depreciating after the Federal Reserve Chair Janet Yellen said on Tuesday the US central bank could hike interest rates sooner than expected if hiring and wages take off in unexpected way.
A report, due to be released later today, may show improvement in the housing market after another one yesterday showed industrial production climbed in June.
New home sales have been moving higher which may give a lift to housing starts and permits, both of which are expected to increase.
As of 03:53 a.m. ET, Spot Gold rose 0.42% to $1,306.25 an ounce. The metal dropped to $1,292.26 on Tuesday, the lowest level since June 19.
Among other precious metals:
- Spot Silver rose 0.49% to $20.85 an ounce
- Spot Platinum rose 1.06% to $1,498.50 an ounce
- Spot Palladium rose 0.94% to $884.40 an ounce
Meanwhile, the metal`s safe-haven appeal shined again after the US and European yesterday unveiled sanctions on Russian business and said more may follow.
The most aggressive sanctions to date came after travel banks and asset freezes aimed at President Vladimir Putin`s inner circle failed to force the country to meet an ultimatum to end support for separatists in eastern Ukraine.
The sentiment also got a boost amid signs of increased demand in China and India, the world`s top-consuming nations.
According to data released by the government on Wednesday, Indian exports during June were recorded at $26.5-billion, up 10.2% over the previous corresponding period, representing double-digit growth for the second consecutive month.
In China, which surpassed India last year as the biggest consumer, volumes for the benchmark spot contract in Shanghai rose for a second day yesterday to a one-week high of 13,421 kilograms.